Why should you invest in Turkey in 2023? Ten Motives to Invest

Turkey, a country situated at the crossroads of Europe and Asia, has attracted considerable interest from investors worldwide. Due to a multitude of compelling factors, it is not surprising that Turkey is becoming a popular destination for those seeking lucrative investment opportunities. 

1. Strong Economy

In the past two decades, the Turkish economy has demonstrated resilience and growth, often outpacing other emerging markets and tripling in size. This vigour is supported by a diverse economic structure that includes manufacturing, services, and agriculture. A robust economy is typically associated with a robust Turkish real estate market, as it increases consumer confidence and purchasing power. Moreover, economic stability can attract long-term institutional investors, thereby bolstering the real estate industry.

2. Accessible Domestic Markets

The strategic location of Turkey between Europe and Asia gives businesses access to numerous markets. This geographical advantage can also be utilised by the real estate sector to attract foreign investors and tenants who view Turkey as a gateway to larger markets. Turkey's population is 85 million, and it has unfettered access to more than 1 billion consumers in the EU and FTA region. The influx of international businesses can also increase demand for commercial and residential spaces of superior quality.

3. Strategic Placement

In addition to market access, the location of Turkey makes it a logistical hub, connecting major international trade routes with 16 Time Zones. This is especially advantageous for commercial real estate, as companies will seek out locations that provide logistical advantages for distribution and supply chain management. The presence of major ports and transportation networks can increase the value of industrial real estate in certain areas.

4. Positive Demographics

With half of the population under the age of 33, Turkey's young and expanding population is a significant asset.Turkey's working-age population is significantly larger than Europe's. Typically, a young population correlates with increased housing demand, as young families seek to settle and invest in property. This can increase both property values and rental yields, making residential real estate an especially alluring investment option.

 

5. Competent and Attractive Workforce

A skilled labour force makes a country appealing to businesses in all industries. In turn, this can generate demand for office spaces, industrial properties, and residential housing for employees, thereby stimulating the real estate market. As improvements are made to the education system in Turkey, the annual number of graduates keeps rising. In addition to attracting industries that require specialised facilities, the availability of skilled labour can diversify real estate investment opportunities.

6. Continuous Reform Method

The commitment of Turkey to economic reforms improves its business climate, with major reforms occurring every 18 to 24 months in a variety of sectors. Simplified property transactions, zoning laws, and construction permits can make it easier for investors to enter the real estate market if regulations are streamlined. These reforms may also increase transparency, thereby reducing the risks associated with real estate investments.

7. Friendliness to Business

A transparent legal framework and investor support mechanisms can make Turkey an attractive location for international real estate investment. This may increase foreign direct investment in the real estate market. The ease of doing business can also facilitate property acquisition, management, and eventual resale for investors. Treaties exist to avoid double taxation with 87 and growing countries. 

8. Profitable Incentives

Various tax credits and grants can make investments more desirable. These incentives can significantly reduce the cost of property development and ownership in the real estate sector, thereby increasing the sector's attractiveness. These financial advantages can make Turkey an especially attractive location for large-scale development and long-term investment strategies.

9. Prosperous R&D Ecosystem

A strong emphasis on research and development can attract businesses in the technology and innovation sectors. This can create demand for specialised real estate like tech parks, R&D centres, and co-working spaces, offering new avenues for investment. Incorporating advanced technologies into urban planning and real estate development, the government's emphasis on innovation may also lead to the creation of smart cities.

10. Sectoral Advantages

Multiple sectors, including automotive, energy, finance, and infrastructure, are ripe for investment in Turkey's diverse economy. This could translate into a variety of opportunities in the Turkish real estate market, ranging from industrial and commercial spaces to tourism-related properties such as Turkish hotels and resorts. The diversity of sectors enables a more risk-balanced investment portfolio by providing options that can be tailored to various market conditions and investor preferences.

The aforementioned factors make Turkey an attractive real estate investment destination in 2023. Demand for residential properties can be fueled by a robust economy and favourable demographics. Commercial and industrial real estate is attractive due to its strategic location and market accessibility. Continuous reforms and business-friendly policies can simplify the investment process, while enticing incentives can provide monetary benefits. The flourishing R&D ecosystem and diverse sectoral opportunities create niche markets for specialised real estate investment.